- Shaftesbury is a leading central London property REIT, focused on the burgeoning West End of London, having recently merged with Capital and Counties, resulting in the addition of prime properties in adjacent zones.
- The West End of London is a global destination for visitors as well as a top-end shopping experience, where luxury global brands resonate, experiencing over 200 million visitors per year, both domestic and international. In addition to a large working population in the precinct, the group offers restaurants, cafes, leisure venues, such as the renowned Covent Garden precinct, shops, offices, and residential buildings, and is experiencing a major growth phase, with post-COVID travel beginning to accelerate.
- The merger of the two companies has resulted in Capital and Counties acquiring prime properties such as Soho, Chinatown, and Carnaby Street, which should enhance the group’s 400 hospitality offerings, aided by the existing extensive transport hubs. The niche diversified property portfolio, with its heritage buildings, is impossible to replicate, as are the mixed-use offerings, which should drive future income growth, despite the headwinds of slower global growth, escalating inflation, and higher interest rates, due to its unique positioning and location of its investment property portfolio.
- The annualised gross income of £1.78 billion is in a diversified revenue stream, with retail at 34%, hospitality and leisure contributing 37%, offices 17%, and residential 12%, with the portfolio of 2,000 lettable units, encompassing 670 buildings. Shaftesbury has a resilient balance sheet with a net debt to loan value of 31%, and the potential savings of synergies from the combined entities.
Shaftesbury’s high-quality assets should reward patient investors with growth in Rand Hedge income and capital growth over the medium to long term.
By Ron Klipin